Brock Rentals Inc. in Monroe, WA has been renting Brokk remotely controlled demolition machines since 2000. The electro-hydraulic machines, which range in size from 900 to 12,000 lbs., are used in a wide variety of demolition tasks from demolishing bank vaults, stairways, floors and chimneys; remodeling hotels; and replacing brick linings in furnaces to virtually any jobs where access might be limited.
“We’ve had machines on chimneys and even underwater,” explained President Tomas Lundstrom, who noted their market extends throughout the U.S., Canada and Mexico. “Our customers are primarily concrete demolition contractors, both large and small, who cannot justify buying a machine to accommodate a specific project or two.”
When asked how business has been over the last few years, he used the words “up and down.”
“Last year, we may have been down five percent from the previous year, but then again, two years ago rental sales were up 15 to 20 percent. The market is unpredictable, yet it doesn’t vary that much, either. It’s more or less steady.”
That held true during the Great Recession when Lundstrom mentioned his company didn’t suffer the big downturn that hurt so many general rental stores. Many large demolition projects were ongoing and helped sustain sales throughout 2008 and 2009, not to say his business model is not without its challenges.
“Because the equipment is so specialized - with only two manufacturers and not a huge demand for used specialty machines, manufacturers are reluctant to take in used machines - it pays to keep them maintained and in good condition," explained Lundstrom. "Payback can be long, too, up to five years for a machine that costs anywhere from $100,000 to $300,000.”
The upside, of course, is that competition is less keen. You won’t find another specialty rental store across town or even in a neighboring state, and there will always be demolition projects where large machines cannot be used or where air pollution is a concern.
Looking down the road, Lundstrom doesn’t see the Trump administration dramatically affecting his market or rental sales. “Most infrastructure projects such as roads and bridges won’t require the type of equipment we rent, except for tunnel projects, of course. If the new President can reduce taxes, that would be helpful,” he commented.
